On appeal, the Court stated that the exhaustion of administrative remedies doctrine is a judicially-created rule designed to promote economy in resolution of disputes for which an administrative remedy exists and that the “vain act” exception is applicable to the judicially created doctrine. The present case, however, presented a rare instance where a statute, R.C. 153.12(B), required CCI to exhaust its administrative remedies before bringing suit. The Court found that unlike the judicially-created rule, the exhaustion of the administrative remedies doctrine codified in Rule 153.12(B) does not include any exceptions. Moreover, the Article 8 process provides the public owner with the ability to resolve the dispute without costly and time-consuming litigation, as well as to make adjustments during construction in light of known, defined costs. Accordingly, the Court held that a failure to exhaust administrative remedies, would be fatal to CCI’s claim.
The Court these held that although the trial court erred in rejecting Kent State’s defenses, the matter still required remand to determine if Ken State had carried its burden of proof on these defenses.